Bitcoin Forms Short-Term Bottom, $100,000 Rally in Sight
Bitcoin may be forming a short-term bottom after significant selling, with signs pointing to a potential relief rally toward the $100,000–$110,000 range. Recent analysis suggests large investors are opening new long positions, and sentiment has fallen into “extreme fear,” conditions that have often preceded market rebounds. The weekly Relative Strength Index (RSI) is approaching the 30 level, historically associated with cycle lows. Bitcoin is also trading below its 50-week moving average near $102,000, a level it has often retraced toward in previous cycles, supporting the case for an imminent bounce. Expectations of an end to quantitative tightening and potential interest rate cuts are adding to the favorable short-term outlook for risk assets like Bitcoin. Despite these bullish signals, the broader market remains in bearish territory, and any rebound may be temporary if macroeconomic conditions do not improve. The Crypto Fear & Greed Index recently moved from “extreme fear” to “fear,” and some analysts see the current environment as offering a favorable risk-reward setup similar to the market during the early 2020 crash.
